Meralink Reports Q2, Gets Loan

YAKUM, Israel -- Metalink Ltd. (NASDAQ: MTLK - News), a global provider and developer of high-performance broadband communication silicon solutions, today announced its unaudited financial results for the second quarter ended June 30, 2008. In addition, the Company provided additional details regarding its latest cost reduction plan.

Financial Results
Revenues for the second quarter of 2008 were $2.7 million, the vast majority of which consisted of legacy DSL sales. This compared to sales of $2.5 million for the second quarter of 2007. Net loss for the period was $(6.6) million, or $(0.28) per share, compared to $(5.6) million, or $(0.28) per share for the second quarter of 2007. Net loss for the second quarter of 2008 includes stock-based compensation expenses of $0.5 million.

For the first six months of 2008, revenues were $3.3 million, the vast majority of which consisted of legacy DSL sales. This compared to sales $4.9 million for the first half of 2007. Net loss for the first six months of 2008 was $(16.4) million, or $(0.70) per share, compared to a net loss of $(10.6) million, or $(0.53) per share, for the first six months of 2007.

Metalink's cash, cash equivalents, short and long-term investments as of June 30, 2008 were $9.5 million. This amount includes approximately $0.8 million of auction rate securities which are pledged to secure a credit line of $0.4 million.

In a separate release:

YAKUM, Israel -- Metalink Ltd. (NASDAQ: MTLK - News), a global provider and developer of high-performance wireless and wireline broadband communication silicon solutions, today announced that it has entered into a short term secured loan agreement with an institutional investor.

According to the loan agreement, the lender agreed to extend to the Company a loan of $3.5 million at the first stage ("First Loan") and, at the request of the Company, an additional loan of up to $4.5 million ("Second Loan"). The key terms of the loan agreement are as follows:

The transaction documents contain customary representations, warranties and covenants, including various limitations on, among other things, the Company's ability to incur additional debt or sell the collateral, without the consent of the lender.

Metalink Ltd. (Nasdaq: MTLK)